The ongoing price war between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery has led to a significant reduction in the price of Premium Motor Spirit (PMS), bringing some relief to Nigerian consumers. On Monday, NNPCL announced its new prices of N860 and N880 per litre for different regions in Nigeria, including Lagos and Abuja. This followed closely on the heels of Dangote Refinery’s price reduction, which had dropped its petrol price to N880 per litre just days earlier.
The situation has sparked a competitive battle between the two entities, which could result in further price drops as they try to outdo each other. According to Billy Gillis-Harry, the National President of the Petroleum Retailers Outlets Owners Association, Nigerians stand to benefit from the competition, with the price reduction providing a much-needed relief for people struggling with the high cost of living.
Abubakar Maigadi, the President of the Independent Petroleum Marketers Association of Nigeria, described this as an example of the benefits of deregulation in the oil sector. He emphasized that the reduction in prices is a positive outcome of competition and that it brings joy not only to consumers but also to marketers in the industry.
Both industry leaders have suggested that more price reductions could be expected as the price war intensifies, benefiting Nigerian consumers in the long run.
